Rs 27 to Rs 399: This metal stock turned into a multibagger in three years; trading near record high

Shares of JTL Industries Ltd have turned into multibagger in the last three years. The stock, which closed at Rs 26.9 on August 28, 2020 ended at Rs 398.85 on BSE on August 29, 2023, delivering 1382.71% returns in three years. During the period of two years and one year, the stock climbed 151% and 98.73%, respectively. In comparison, Sensex has zoomed 65% in three years.  The metal stock hit a yearly low of Rs 185.70 on September 16, 2022 and a record high of Rs 412.60 on August 8, 2023.    

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In the last session, JTL Industries shares ended 0.73% higher at Rs 398.85 against the previous close of Rs 395.95 on BSE. Total 0.85 lakh shares of the firm changed hands amounting to a turnover of Rs 3.38 crore on BSE. Market cap of the firm climbed to Rs 3368.57 crore.    

In terms of technicals, the relative strength index (RSI) of the JTL Industries stock stands at 65, signaling it's trading neither in the overbought not in the oversold zone. JTL Industries shares have a beta of 0.9, indicating low volatility in a year. JTL Industries shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.    

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The firm reported a profit of Rs 25.4 crore in the June 2023 quarter compared to Rs  11 crore profit in the corresponding period last year. Revenue from operations climbed to Rs 505.6 crore in the first quarter of current fiscal compared to Rs 259.24 crore in the year-ago period. Operating profit climbed to Rs 35.5 crore in Q1 against Rs 13.9 crore in the June quarter of the last fiscal.   

Here’s a look at the outlook of the stock.    

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Abhijeet from Tips2trades said, “JTL Industries is bearish on the Daily charts with strong resistance at 505. A daily close below support of 458 could lead to targets of 429-382 in the near term.”  

Axis Securities expects the JTL stock to hit the Rs 470 mark this year.  

"With the phase-wise volume expansion progress, we model revenue/EBITDA/PAT CAGR of 46%/45%/51% over FY23/25E. We have a BUY rating on the stock and value JTL at 22 times its FY25 EPS to arrive at our 1-year forward target price of Rs 470/share," said the brokerage. 

JTL Industries Limited is a producer of electric resistance welded (ERW) steel pipes including pipe and tube manufacturers in India. The company produces black and galvanized ERW steel pipes and tubes, hollow sections and structural steel that are used in engineering and construction projects. Its product includes galvanized steel tubes and pipes, scaffolding fittings and systems, hollow sections, LTZ sections, and mild steels angles/channels. Its services include solar solutions, logistic services, and packaging and loading services.